An employee resigns on the 1st of February, and her January month salary is not paid and have been put on hold the payday happens to be 1st week of every month, is this legal?
From India, Delhi
From India, Delhi
Salary for the period the employee has worked cannot be put on hold. It should be paid. If the employee is under any legal obligation to give notice before resignation, then the salary payable can be adjusted against the notice pay but with the consent of the employee only. And, if the employee is an employee coming under the scope of Industrial Disputes Act, legally he has no obligation to serve notice if he wants to leave the company and as such holding his salary is not at all an option to recover notice pay.
From India, Kannur
4238From India, Kannur
Dear madhu, If salary is being hold after resignation & not release in subsequent payable month. Legally under which Act Employer is committing non compliance.
From India, Ahmedabad
From India, Ahmedabad
Payment of Wages Act provides for payment of salary within 7 days of closing the wage month. The salary is due after the employee has put in work or labour for the prescribed month. Therefore, non payment of wages subsequent to resignation is questionable. The Act does not allow an employer to hold the salary of a resigned employee for any reason.
The Industrial Disputes Act provides that in order to terminate an employee the employer should give notice. The Act also says that if no notice is served, the employer should give salary in lieu of that notice. But no where in the Act it is mentioned that an employee should also give prior notice or pay salary or compensate the employer by means of paying one month salary in lieu of notice.
However, the above will not apply to employees who have functional responsibilities of managers. Please note that it does not apply to managers by function and not by designation.
From India, Kannur
The Industrial Disputes Act provides that in order to terminate an employee the employer should give notice. The Act also says that if no notice is served, the employer should give salary in lieu of that notice. But no where in the Act it is mentioned that an employee should also give prior notice or pay salary or compensate the employer by means of paying one month salary in lieu of notice.
However, the above will not apply to employees who have functional responsibilities of managers. Please note that it does not apply to managers by function and not by designation.
From India, Kannur
@ Madhu T K ..and others
Payment of wages .. will applicable only too <24k/Wages .. what about employees not covered under act .?
Notice period ..does mention 30 day /15 days notice period clause but not about payment of notice period more than 30 days ..ex90 days ..
Most issue come at Managerial level ..then how to take care as labour law or statutory law..
ple guide
From India, Mumbai
Payment of wages .. will applicable only too <24k/Wages .. what about employees not covered under act .?
Notice period ..does mention 30 day /15 days notice period clause but not about payment of notice period more than 30 days ..ex90 days ..
Most issue come at Managerial level ..then how to take care as labour law or statutory law..
ple guide
From India, Mumbai
It is true that non payment of wages of an employee whose salary exceeds Rs 24000 will not come under the purview of Payment of Wages Act, but if the person concerned is a workman under ID Act, the appropriate authority can initiate action against the employer under the relevant Act of ID Act.
If the employee is a manager by functions, he will be outside the purview of ID Act and you can fix the service conditions in respect of such employee. Yes, that can include payment of salary in lieu of notice period not served. But if the employee is not a manager, not having any managerial rights and duties, whatever be the salary he is getting, you cannot impose any restrictive clauses like notice or payment in lieu of notice.
If the issue is at managerial level, no problem, you can proceed with recovery.
From India, Kannur
If the employee is a manager by functions, he will be outside the purview of ID Act and you can fix the service conditions in respect of such employee. Yes, that can include payment of salary in lieu of notice period not served. But if the employee is not a manager, not having any managerial rights and duties, whatever be the salary he is getting, you cannot impose any restrictive clauses like notice or payment in lieu of notice.
If the issue is at managerial level, no problem, you can proceed with recovery.
From India, Kannur
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Salary on Hold.zip
Salary-Note.doc
SALARY SHEET CALCULATION.xls